Find Your Resource

Stewart’s Shops, USA Mortgage, Eureka Casino Resorts, B&I Contractors, Sears, Amazon

Mortenson Dental Partners is one of the few employee-owned dental organizations in the country. Mortenson balances Department of Labor and Internal Revenue Service regulations with state dental practice regulations to successfully sponsor its ESOP.

In recent years, the Department of Labor has been more concerned about ESOPs paying for control when, in the DOL’s view, it doesn’t really need to do so or is acquiring control more in form than substance.

The responsibility to create effective alignment should never rest solely with committees themselves. Leadership can play a significant role in both enabling committees to be successful and supporting them through some of their biggest challenges when it comes to creating a strong culture of ownership. There are several things to consider when working to create more effective alignment of between each group’s goals and the practices that will help all teams involved achieve them.

At the 2018 NCEO conference in Atlanta, we had a keynote panel of Web Industries, Polyguard, and Butler/Till. All are mature ESOPs that have had remarkable success in both business and ownership culture terms. They have highly engaged employees operating in high-involvement systems, using detailed financial and performance metrics, and generating not just better ideas for doing what they already do, but for new products and services as well.

For the first time since the late 1970s, non-tax bills to promote employee ownership are moving in Congress.

Q. My lawyer told us we have to release shares from the ESOP suspense account based on the interest and principal paid. We have a 25-year company-to-ESOP loan.

If a company cannot make its balloon payment on an ESOP loan but can negotiate the debt, what happens with the ESOP?

How will the new tax law affect ESOP valuations?